Question: 0n 4/21/2020, Netflix reported 16 million new subscribers during the first quarter of 2020. Streaming services are a bright spot during this economic shutdown due
0n 4/21/2020, Netflix reported 16 million new subscribers during the first quarter of 2020. Streaming services are a bright spot during this economic shutdown due to the Coronavirus outbreak, but the company faces negative factors as well. Increased operating costs may explain the results, discussed late in the article, that profit of $709.1, or $1.57 a share, was achieved while the company was expected to earn $1.64 a share. Nonetheless, shares rose in after-hours following Netflixs release of its video to discuss financial results in the first quarter of 2020.
So, how does the breakdown of Netflix's new subscribers by geographic area help to assess the companys operating results? Do you think that assessing financial information in addition to subscriber numbers by geographic area would help to further understand Netflix's performance during this period? Explain your reasoning. Is there a specific requirement to provide information about the geographic areas discussed by Netflix and reported in this article? Explain your answer and provide supporting citations to professional literature.
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